Lightwater leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Lightwater will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Lightwater lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Kai, came critically close to the 80-year mark with the lease on his two bedroom apartment in Lightwater. In buying his home 19 years ago, the lease term was of no relevance. by good luck, he recognised he needed to take action soon on Extending the lease. Kai arranged for a lease extension just under the wire last September. Kai and the freeholder in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £900.
Last Spring we were called by Mr and Mrs. B Gómez , who acquired a first floor flat in Lightwater in April 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Lightwater with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed annually. The lease ran out on 16 November 2102. Considering the 77 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. V Reed was assigned a lease of a one bedroom flat in Lightwater in June 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in Lightwater with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished on 7 March 2091. Given that there were 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 plus legals.